Nintendo Switch Lite
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Contents TOC \o "1-3" \h \z \u Executive summary PAGEREF _Toc24975717 \h 3Introduction PAGEREF _Toc24975718 \h 4Method PAGEREF _Toc24975719 \h 5Analysis and Interpretation PAGEREF _Toc24975720 \h 5Internal environment PAGEREF _Toc24975721 \h 5Micro Environment PAGEREF _Toc24975722 \h 6Macro Environment PAGEREF _Toc24975723 \h 8Conclusion PAGEREF _Toc24975724 \h 9Recommendations PAGEREF _Toc24975725 \h 10References PAGEREF _Toc24975726 \h 11Appendix PAGEREF _Toc24975727 \h 12
Executive summary
This report analyses the marketing environment for Nintendo Switch Lite, a new product in the UK namely the internal micro-and macro- environment. At the internal environment level, employees work in various divisions to create new products and improve the existing products development. At the micro-environment level, Nintendo spends huge investments on robust research and development to improve product development and remain competitive. There are different forces affecting the company’s macroenvironment, and the UK’ economy have the greatest impact on sales potential as there are still uncertainties on Brexit. Expanding the target market will improve the market share in the game system.
Introduction
Nintendo Switch Lite, was announced on July 10, 2019, and released on September 20, 2019, priced at $ 199.99 compared to $299.99 for the standard Nintendo Switch. The Switch Lite version is smaller than the standard Switch version. The screen is 5.5" (1280 x 720) LCD Screen and the stripped-down version focuses on portability rather than the TV output (MacDonald, 2019). Nintendo Switch Nintendo Co Ltd (Nintendo) creates, develops, manufactures and sells various electronic home entertainment products including Nintendo Switch and Nintendo Switch Lite. Handheld vices, home console video game systems, video game platforms and various gaming-related products are among the most popular products.
Method
This report focuses on the market environment of Nintendo Switch Lite in the UK analysing and the success of the new product. The internal environment focuses on how the internal factors affect the company’s growth potential, decision making and competitiveness. The micro environment focuses on actors close to Nintendo who shape how the company serves the customers and provides value to them (Armstrong et al., 2015, p. 120). The macro environment includes various societal factors affecting Nintendo and the micro environment including the opportunities and threats.
The report uses data and information from news sources, journal articles and government data. Nintendo Switch Lite is a newly released product, and most information is from news articles. Websites have more accurate data and information n sales figures and sales up-to-date, which is necessary to evaluate the sales patterns. Journal articles focus on marketing management and the market environment.
Analysis and Interpretation
Internal environment
Nintendo had 5,944 employees in the 2091 financial year compared to 5,501 employees in the 2018 financial year (Nintendo, 2019, p. 2). The company educates the employees on corporate governance specifically the policies such as good corporate ethics (Nintendo, 2019, p.19). the employees work in the entertainment planning & development division, marketing division, licensing, platform technology, manufacturing, planning & development, corporate analysis & administration, software, and the business development division (Nintendo, 2019)
The internal environment reflects the internal factors that influence decision making in an organization including the corporate culture, employees, the management, mission, objectives financial resources, physical resources and human resources. The company’s research and development (R&D) capabilities are one of the major sources of internal resources and competencies that keep the company competitive. Nintendo has robust R& D capabilities that allow the company to develop new technologies and improve performance. The company’s technological advantages make it easier to overcome technical barriers and combined with well known and reputable brand, Nintendo is able to commercialize new products such as the Nintendo Switch Lite. The company’s owns the intellectual property of many popular games where the games are available in Nintendo consoles. For Nintendo Switch Lite the company gates the largest share of profits since customers have to purchase Nintendo products to play the games
Micro Environment
The micro-environment relates to the factors or forces close to the company that affect strategy, business strategy and performance. The micro environment of the company depends on different factors affecting operation such as customers, competitors, suppliers, distribution channels, suppliers, and the public. Analysis of the microenvironment informs the decision-where to improve competitiveness and address weaknesses.
The micro-environment factors influence marketing decisions and competitiveness where the marketing department focuses on attracting customers and relating to the customers through offering value and meeting their satisfaction. Removal of the TV output option and making the device smaller is based on how customers use the devices as there are fewer players who use the TV functionality option and the Joy-Con features (MacDonald, 2019). The Nintendo Switch Lite like other company’s products is an interactive entertainment product. Nintendo is headquartered in Kyoto, Japan, and the company’s products are mainly sold in Europe, the Americas, and Asia-Pacific through subsidiaries
Nintendo customers include children and adults and three are multiplayer options, and the handheld consoles target children, young people and parents. The customers want interactive entertainment games, and since the launch of Nintendo's Switch Lite, the product has grown among women and families. There are efforts to diversify the game market and the inclusion wide range of genre of games will likely result in increased sale of the product (Segarra, 2019).
According Takahashi (2019), the Nintendo Switch Lite is not cannibalizing the sales of Nintendo Switch, as the sales of both products have grown since the Switch Lite was launched. The weekly sales of Nintendo Switch Lite have grown independent of the older version of Nintendo Switch, and more wome...